Mortgage Rates Decline to Lowest Levels Since Early 2023

By
Terry Lane
Terry Lane Terry Lane
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Terry has 25 years experience in journalism and communications, reporting on a range of topics that include personal finance, telecommunications, Congress, government regulations, and criminal justice. He has also worked on technology, energy, and environmental policy issues as a congressional press secretary and owned and published a local community newspaper in North Carolina.
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Published September 11, 2024
09:00 AM EDT
A for sale sign is displayed outside of a home for sale on August 16, 2024 in Los Angeles, California. A for sale sign is displayed outside of a home for sale on August 16, 2024 in Los Angeles, California.

Patrick T. Fallon/AFP via Getty Images

Key Takeaways

  • Rates dropped to 6.29% for the 30-year, fixed-rate mortgage, the lowest rate measured by the Mortgage Brokers Association (MBA) since February 2023.
  • Mortgage rates are down nearly three-quarters of a percentage point since July. 
  • The lower rates helped push demand higher for both home purchases and refinancing.

Spurred by another drop in interest rates, mortgage demand moved lower for the week ending Sept. 6.

Mortgage rates dropped to 6.29% last week, the lowest rate since February 2023, helping to push the volume of applications higher by 1.4%, according to Mortgage Brokers Association (MBA) data. Mortgage rates have declined significantly over the past two months, dropping steadily since early July, when the 30-year, fixed-rate mortgage was at 7%.

Applications for home purchases increased by 2%, while refinancing was higher by 1% over the week prior.

Refinancing Surges on Mortgage Rate Dip

The data showed that homeowners with high mortgage rates continued to utilize the dip in borrowing costs to refinance their home loans. Refinancing last week was 106% higher than a year ago.

“With rates almost a full percentage point lower than a year ago, refinance applications continue to run much higher than last year’s pace,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “It is a positive development that there are homeowners who can benefit from a refinance as rates continue to move lower.”

However, most homeowners have rates lower than 5%, leaving refinancing activity relatively limited, Kan added.

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